SODIC has announced its consolidated financial results for the first nine months of 2023. The company sold 1,396 units during this period, generating gross contracted sales of EGP 19.8bn, a 67% increase from EGP 11.8bn recorded in the same period of 2022.
The gross contracted sales were driven by strong demand for SODIC’s projects in different markets. East Cairo projects contributed 28% of the sales, mainly from Villette and SODIC East, which accounted for 17% and 12% of the sales respectively. West Cairo projects contributed 52% of the sales, mainly from the relaunched 464-acre project, which accounted for 25% of the sales. North Coast projects contributed 20% of the sales, mainly from SODIC’s secondary home products.
The cancellation rate was 5% of the gross contracted sales, compared to 8% in the same period of 2022.
The net cash collections reached EGP 7.2bn, with a delinquency rate of 3.23%. This compares to collections of EGP 4.6bn and a delinquency rate of 6.9% in the same period of 2022.
The company delivered 743 units during this period, of which 452 were in East Cairo projects, 287 were in West Cairo projects, and 4 were in North Coast projects. This compares to 843 units delivered in the same period of the previous year. The company’s delivery plan for 2023 is heavily weighted towards the fourth quarter of the year based on scheduled project completions.
The CAPEX spent on construction during this period amounted to EGP 3.2bn, compared to EGP 2bn in the same period of the previous year.
The revenues recorded during this period were EGP 4.97bn, a 7% increase from EGP 4.65bn recorded in the same period of the previous year.
The revenues were mainly driven by deliveries in East Cairo projects, which accounted for 52% of the delivered value, led by SODIC East and Villette’s Sky Condos, which accounted for 25% and 10% of the delivered value respectively. West Cairo projects accounted for another 46% of the delivered value, led by October Plaza, Allegria Residence, and Pavilion.
The gross profit increased by 21% YoY to EGP 1.78 billion, reflecting a gross profit margin of 36%. This compares to a gross profit of EGP 1.48bn and a gross profit margin of 32% in the same period of last year.
The operating profit for this period was EGP 696m, reflecting an operating profit margin of 14%. This represents a 15% growth from an operating profit of EGP 603m and an operating profit margin of 13% in the same period of last year.
The net profit after tax and non-controlling interests was EGP 548m, a 26% growth from EGP 434m in the same period of last year. The net profit margin expanded by 170bps YoY to 11%.
